Time reduced in IPO Process from 1-5-2010

SEBI(Security & Exchange Board of India) on 6th of april 2010 issued a notification stated that the IPO(Intitial Public Offer) time will be reduce from 01-05-2010. Full notification is as under.

PR No.88/2010

Reduction in timelines between issue closure and listing

SEBI, in its continuing endeavour to make the existing public issue process more efficient, proposes to reduce the time between public issue closure and listing to 12 days from existing of up to 22 days. This will be applicable to public issues opening on or after May 1, 2010.

The new process would require syndicate members to capture all data relevant for the purposes of finalizing the basis of allotment while uploading bid data in the electronic bidding system of the stock exchanges. To ensure that the data so captured is accurate, syndicate members would be permitted an additional day to modify some of the data fields entered by them in the electronic bidding system. Registrar to the issue is required to validate the bids and finalize the basis of allotment only on the basis of the final electronic bid file provided by the stock exchanges.

It is emphasized that the Lead Managers/their agents would be responsible for the accuracy of data entry and for resolving investor grievances. Further, the ASBA process would also undergo suitable modification to make it consistent with these timelines.